BoC Senior Deputy Governor Carolyn Wilkins said in a remarks that last year, policy makers heard clearly that “many people feel that inflation is higher than reported”. Now, COVID-19 has “only exacerbated this perception of higher inflation”.
Falling prices around travel are “not relevant” to most people. But the more than 4% rise in meat price since February “doesn’t feel like low inflation”. Yet “measured inflation is close to zero” considering the full basket of goods and services.
She added that “it’s critical that we measure inflation as accurately as possible so Canadians have confidence in our target; and we must address public perceptions in our analysis and communications.
